Balance Sheet as at 31st March 2003

(Rs. in million)
Particulars Sch. No. 31.03.2003 31.03.2002

I SOURCES OF FUNDS
1. Shareholders' Funds:
a. Capital 1 60.91 60.91
b. Reserves and Surplus 2 773.99 718.41
834.90 779.32
2. Loan Funds:
a. Secured Loans 3 0.11 75.93
b. Unsecured Loans 4 4.21 29.16
4.32 105.09
3. Deferred Tax Liability 5 53.63 59.25
Total 892.85 943.66
II APPLICATION OF FUNDS
1. Fixed Assets:
a. Gross Block 6 972.81 930.72
b. Less: Depreciation 612.50 548.35
c. Net Block 360.31 382.37
d. Capital Work in progress 30.98 7.76
2. Investments 7 37.03 40.70
3. Current Assets,
Loans & Advances 8
a. Inventories 328.90 272.19
b. Sundry Debtors 299.85 293.21
c. Cash and Bank balances 171.43 56.47
d. Other Current Assets 1.67 0.25
e. Loans and Advances 304.92 348.47
1106.77 970.59
Less: Current Liabilities
and Provisions 9
a. Liabilities 529.73 345.12
b. Provisions 195.76 163.85
725.49 508.97
Net Current Assets 381.28 461.62
4. Miscellaneous Expenditure:
(to the extent not written off
or adjusted)
Deferred Revenue Expenditure 10 83.25 51.21
Total 892.85 943.66

The Schedules referred to above and Notes thereon form an integral part of the Balance Sheet.

For and on behalf of the Board "As per our report of even date"
L.G. VARADARAJULU Dr. JAIRAM VARADARAJ For RJC ASSOCIATES For SRIVATSAN & GITA
Chairman Managing Director Chartered Accountants Chartered Accountants

Coimbatore P. VANCHINATHAN P. VENKATESAN R. JAYACHANDRAN S. SIVAKUMAR

30.04.2003 Company Secretary AGM-Accounts Partner Partner
Profit and Loss Account for the Year ended 31st March 2003

(Rs. in million)
Particulars Sch. No. 31.03.2003 31.03.2002
INCOME
Sales (Includes Traded goods of Rs.105.11 million) 2503.16 2210.91
(Previous year Rs.85.85 million)
Other Income 11 35.66 45.97
Total Income (A) 2538.82 2256.88
EXPENDITURE
Materials Consumed (Includes Purchase
of Traded goods of Rs.79.76 million) 12 1326.89 1123.22
(Previous year Rs.64.48 million)
Salaries, Wages, Bonus, Gratuity, etc 13 201.78 193.03
Excise Duty 289.26 268.22
Other Expenses 14 429.78 397.59
Interest and Bank Charges 15 7.94 17.96
Depreciation 72.85 68.69
Lease Equalisation Charges Nil 1.91
Deferred Revenue Expenditure Written off 4.99 5.55
Total Expenditure (B) 2333.49 2076.17
PROFIT BEFORE TAX &
EXTRA-ORDINARY ITEMS (A-B) 205.33 180.71
EXTRA-ORDINARY ITEMS
EXPENDITURE
VRS - Compensation (C) 29.63 13.63
PROFIT BEFORE TAX & AFTER
EXTRA-ORDINARY ITEMS (A-B-C) 175.70 167.08
Provision for Tax 67.42 62.50
Deferred Tax Liability (5.62) (6.40)
PROFIT AFTER TAX 113.90 110.98
Profit Brought Forward 87.79 30.50
Prior Year Adjustments 16 (0.32) (4.01)
PROFIT AVAILABLE FOR 201.37 137.47
APPROPRIATIONS
APPROPRIATIONS
Dividend - Interim 30.45 Nil
Dividend - Final 24.36 45.68
Dividend Tax 3.04 Nil
Transfer to Debenture Redemption Reserve Nil (8.00)
Transfer to General Reserve 11.39 12.00
Profit Carried to Balance Sheet 132.13 87.79
Total 201.37 137.47

Earnings per Share : (Refer Note: 22) ( In Rs.) ( In Rs.)

Basic 1.87 1.76
Diluted 1.46 1.37
The Schedules referred to above and Notes thereon form an integral part of the Profit and Loss Account.

For and on behalf of the Board "As per our report of even date"

L.G. VARADARAJULU Dr. JAIRAM VARADARAJ For RJC ASSOCIATES For SRIVATSAN & GITA
Chairman Managing Director Chartered Accountants Chartered Accountants

Coimbatore P. VANCHINATHAN P. VENKATESAN R. JAYACHANDRAN S. SIVAKUMAR

30.04.2003 Company Secretary AGM-Accounts Partner Partner
Schedules to Balance Sheet and Profit and
Loss Account as at 31st March 2003
(Rs. in million)

Particulars 31.03.2003 31.03.2002

1 SHARE CAPITAL
AUTHORISED CAPITAL
10,00,00,000 Equity Shares of
Re.1/- each 100.00 100.00
ISSUED, SUBSCRIBED AND PAID UP CAPITAL
FULLY PAID UP
6,00,00,000 Equity Shares of Re.1/- each
Issued, Subscribed 60.00 60.00
(Out of the above, 4,87,50,000 Shares
were issued as Bonus Shares by
Capitalisation of Reserves)
PARTLY PAID UP
2,00,00,000 Equity Shares of Re.1/- each 0.91 0.91
issued out of which 1,81,74,240 Equity
Shares were subscribed (Rs.0.05 paid up)
60.91 60.91
2 RESERVES AND SURPLUS
CAPITAL RESERVE
State Subsidy received 0.30 0.45
Less: Transferred to Profit and
Loss Account 0.15 0.15
0.15 0.30
Add: Share of Reserve on account of
revaluation of assets of a firm in which
the Company is a partner 29.09 29.24 29.09 29.39
DEBENTURE REDEMPTION RESERVE
As per the last Balance Sheet 9.00 17.00
Less:Part Redemption made
during the year 9.00 Nil 8.00 9.00
SHARE PREMIUM
As per the last Balance Sheet 147.72 135.00
Add : Share Premium in respect of Nil 147.72 12.72 147.72
Partly paid up Equity Shares
EXPORT PROFIT RESERVE 0.20 0.20
GENERAL RESERVE
As per the last Balance Sheet 453.31 516.52
Add: Transfer from Profit and
Loss Account 11.39 12.00
Less: Deferred Tax relating to
earlier years Nil 65.65
Less:Adjustment in Opening Stock
due to change in Method of Nil 18.56
Valuation. 464.70 444.31
SURPLUS
Balance in Profit and Loss Account 132.13 87.79
773.99 718.41
 (Rs. in million)
Particulars 31.03.2003 31.03.2002
3 SECURED LOANS
DEBENTURES
500,000 16% Partly Convertible Debentures
of Rs.50/-each (Redeemed in 3 instalments on
22.11.2000 - Rs. 16/-
22.11.2001 - Rs. 16/- and
22.11.2002 - Rs. 18/-) Nil 9.00
FROM BANKS
Demand Loan Nil 41.38
Open Loan Nil 25.30
HIRE PURCHASE LOAN 0.11 0.25
0.11 75.93
4 UNSECURED LOANS
Fixed Deposits 4.21 29.07
From Directors Nil 0.09
4.21 29.16
5 DEFERRED TAX LIABILITY
As per the last Balance Sheet 59.25 65.65
Add / (Less) - for the year (5.62) (6.40)
53.63 59.25

6 FIXED ASSETS

GROSS BLOCK DEPRECIATION NET BLOCK

Description
As During theYear As As During theYear As As As
of Assets
at at at at at at
01.04.02 Additions Deletions 31.03.03 01.04.02 Additions Deletions 31.03.03 31.03.03 31.03.02

Land 15.25 Nil Nil 15.25 Nil Nil Nil Nil 15.25 15.25
Buildings 137.65 2.65 3.06 137.24 64.03 6.45 2.36 68.12 69.12 73.62
Plant&
Machinery 709.42 44.87 4.85 749.44 441.91 60.53 4.43 498.01 251.43 267.51
Electrical
Fittings,
Furniture
& Office
Equipments 58.11 5.82 0.48 63.45 38.89 5.22 0.36 43.75 19.70 19.22
Motor Vehicle 9.50 1.56 4.42 6.64 2.91 0.61 1.53 1.99 4.65 6.59
Canteen
Equipments 0.79 Nil Nil 0.79 0.61 0.02 Nil 0.63 0.16 0.18
Grand Total 930.72 54.90 12.81 972.81 548.35 72.83 8.68 612.50 360.31 382.37
Previous Year 904.40 48.67 22.35 930.72 499.89 68.69 20.23 548.35 382.37 404.52
1. Building includes:
i. Constructed in Lease/Rental Premises Rs. 5.93 million (Previous year Rs. 5.93 million).
ii. Cost of Building Rs. 0.08 million at Ahmedabad yet to be registered in the name of the
Company.
2. Land and Buildings includes Rs. 0.63 million jointly owned.
 (Rs. in million)
No. of Face Value 31.03.2003 31.03.2002
Particulars
Shares per Share
7 INVESTMENTS (AT COST)
INVESTMENTS IN GOVERNMENT
SECURITIES
National Savings Certificate
(Lodged with Government Authorities
Rs. 0.01 million)
(Previous year Rs. 0.01 million) 0.01 0.01
Indira Vikas Patra 0.00 0.00
NON-TRADE QUOTED EQUITY
SHARES (FULLY PAID)
State Bank of India 300 10 0.03 0.03
HDFC Bank Ltd 500 10 0.01 0.01
HDFC Ltd 2400* 10 0.03 0.03
Magna Electro Castings Ltd 50000 10 0.50 0.50
Elgitread (India) Ltd 109100 10 7.95 7.95
Premier Instruments & Controls Ltd 6283 10 0.54 0.54
L. G. Balakrishnan & Bros Ltd 624 10 0.03 0.03
Lakshmi Machine Works Ltd 5 100 0.01 0.01
NON-TRADE UNQUOTED
I. Equity Shares (Fully Paid)
Coimbatore Pvt. Industrial Estates Ltd 77 1000 0.08 0.08
The Mill Officers Co-Op Housing
Colony Ltd., Ahmedabad 5 50 0.00 0.00
Elgi Securities Ltd 99300 10 0.99 0.99
Super Farm Products Ltd 2000 100 0.20 0.20
Union Motors Services Ltd 83417 10 Nil 2.51
Coimbatore Popular Spinning
Mills Ltd 205000 10 Nil 2.05
II. Non Convertible Preference Shares
Terra Agro Technologies Ltd
-12.5% Cumulative Non Conv.
Pref. Shares 500000 10 5.00 5.00
-14.0% Cumulative Non Conv.
Pref. Shares 250000 10 2.50 2.50
INVESTMENT IN SUBSIDIARY
COMPANY
-Adisons Precision Instruments
Manufacturing Company Ltd
-Equity Shares (Fully Paid) 42550 10 16.87 16.87
-Equity Shares
(Partly Paid - Rs. 2 paid) 49000 10 0.10 0.10
INVESTMENTS IN PARTNERSHIP
FIRMS
L.G.Balakrishnan & Bros (Share 2%) 1.78 0.89
Elgi Services (Share 80%) 0.40 0.40
37.03 40.70

[Total Cost of Quoted Securities Rs.9.09 million (Previous year Rs.9.09 million) and Total
Market Value of Quoted Securities Rs.18.75 million (Previous year Rs.19.69 million)]
*Includes 1200 Bonus shares received during 2002-03.
 (Rs. in million)
Particulars 31.03.2003 31.03.2002
8 CURRENT ASSETS, LOANS AND ADVANCES
a. INVENTORIES
Consumables, Spares and Stores 0.50 1.12
Loose Tools 3.39 4.22
Raw Materials and Components 192.09 138.72
Works-in-Progress 42.83 47.07
Finished Products 90.09 81.06
328.90 272.19
b. SUNDRY DEBTORS
(Unsecured and considered good)
Debts outstanding for a period exceeding 6 months 41.67 49.03
Other Debts 258.18 244.18
299.85 293.21
c. CASH AND BANK BALANCES
Cash on Hand 0.82 0.64
Cheques on Hand 2.55 Nil
With Scheduled Banks
-Current Accounts 3.85 47.78
-Deposit Accounts 164.20 8.03
(Includes Rs.3.19 million (Previous year
Rs.3.43 million) with Banks as Margin Money
With Post Office 0.01 0.02
(Includes Rs.0.01 million(Previous year Rs.0.01 million)
pledged as security with Govt. Authorities)
171.43 56.47
d. OTHER CURRENT ASSETS
Interest Accrued 1.67 0.25
e. LOANS AND ADVANCES
(Unsecured and considered good)
Advances and Loans to Subsidiary Company
-Rent advance
Adisons Precision Instruments Mfg. Company Ltd 2.50 2.50
Advances recoverable in cash or in kind or
for value to be received.
Due on Actionable Claims 98.14 175.38
Loans to Companies
-Elgi Ultra Industries Ltd 28.00 28.00
-Super Farm Products Ltd 0.15 28.15 0.15 28.15
Loans to Directors and Officers 1.76 1.79
(Maximum amount due during the year
Rs.2.04 million)
(Previous year Rs.2.04 million)
Others 21.00 41.26
(Includes Rs.0.05 million (previous year
Rs 0.05 million) due from firms in which
Company is a partner)
Prepaid Expenses 5.18 2.17
Advance Payment of Income Tax 134.46 78.38
Security and Other Deposits 9.28 11.41
Income/Refund receivable 4.45 7.43
304.92 348.47
 (Rs. in million)
Particulars 31.03.2003 31.03.2002
9 CURRENT LIABILITIES AND PROVISIONS
a. CURRENT LIABILITIES
Acceptances 37.45 16.86
Sundry Creditors
Small Scale Industries 51.85 34.64
Others 230.68 226.63
Due to Subsidiary Company Nil 1.82
Advance and Deposits from Customers and Others 208.79 61.05
Unclaimed Dividends 0.96 0.63
Interest accrued but not due Nil 3.49
Investor Education and Protection Fund shall be
credited by the following amounts namely :-
a. Unpaid Dividend Nil Nil
b. Unpaid application money received by the companies- Nil Nil
- for allotment of securities and due for refund
c. Unpaid Matured Deposits Nil Nil
d. Unpaid Matured Debentures Nil Nil
e. Interest accrued but not due on (a) to (d) above Nil Nil
529.73 345.12
b. PROVISIONS
Provision for Taxation 129.92 83.40
Proposed Dividend 24.36 45.68
Provision for Dividend Tax 3.04 Nil
Provision for Employee Benefits 38.44 34.77
195.76 163.85
10 DEFERRED REVENUE EXPENDITURE
VRS Compensation 74.05 41.60
Technical Know-how Fees 9.20 9.43
Others Nil 0.18
83.25 51.21
11 OTHER INCOME
Profit on Sale of Assets 6.42 5.89
Royalty Receipts 12.14 7.66
Rent Receipts 3.86 5.90
Discounting Charges 2.61 13.86
Others - (TDS Rs 0.24 million 9.29 8.87
Previous year Rs.1.12 million)
Dividend Receipts 1.22 1.09
Income from Exchange Fluctuations 0.12 0.67
Income from Lease Operations Nil 2.03
35.66 45.97
12 CONSUMPTION OF MATERIALS
Opening Stock
-Raw Materials 138.72 176.63
-Semi-Finished Products 47.07 41.85
-Finished Products 81.06 67.53
Opening Stock ( Gross of CENVAT) 266.85 286.01
Less:CENVAT Adjusted out of General Reserve Nil 18.56
Opening Stock ( Net of CENVAT) (A) 266.85 267.45
 (Rs. in million)
Particulars 31.03.2003 31.03.2002

Purchases (B) 1385.05 1122.62

Closing Stock
-Raw Materials 192.09 138.72
-Semi-Finished Products 42.83 47.07
-Finished Products 90.09 81.06
Closing Stock ( NET OF CENVAT) (C) 325.01 266.85
Materials Consumed (A+B-C) 1326.89 1123.22
(Materials Consumed includes Machining
Charges of Rs.17.50 million
(Previous year Rs.19.44 million))
13 SALARIES, WAGES, BONUS, GRATUITY ETC.,
Salaries and Wages 158.90 154.17
Bonus 6.87 7.13
Gratuity 7.24 2.96
Contribution to PF and other Funds 12.39 12.67
Managing Director's Remuneration 2.03 1.98
Welfare Expenses 14.35 14.12
201.78 193.03
14 OTHER EXPENSES
Consumption of Stores, Spares 23.38 21.95
Power,Fuel & Lighting 25.76 22.19
Factory Expenses 2.07 0.97
Tools Consumed 18.09 13.23
Repairs and Maintenance of
-Buildings 9.60 16.24
-Machinery 20.59 20.39
-Vehicles 1.13 1.76
-Other Assets 9.43 7.01
Rent 4.80 4.26
Rates & Taxes 3.60 2.95
Printing & Stationery 7.28 8.60
Postage, Telegrams & Telephones 9.88 12.25
Travelling & Conveyance 57.02 50.41
Subscription, Periodicals & Filing Fees 1.00 1.14
Insurance 2.72 3.72
Donation 2.50 1.01
Legal and Accountancy Charges 1.04 0.95
Auditors' Remuneration
-Audit Fees 0.25 0.21
-Other Services 0.10 0.07
-Reimbursement of expenses Nil 0.01
 (Rs. in million)
Particulars 31.03.2003 31.03.2002

Miscellaneous Expenses 21.41 12.89

Research & Development Expenses 3.35 2.94
Directors' Sitting Fees 0.06 0.05
Advertisement & Publicity 12.57 13.55
Transport Charges 26.42 24.63
Packing Materials 38.51 33.04
Commission & Discount 24.09 19.66
Royalty Payments 0.93 0.95
Sales Tax Payments 12.25 11.02
Loss on Investments written off 4.57 Nil
Loss on Sale of Assets 0.63 0.53
Loss on Write-off of Actionable Claims 72.46 72.63
Bad Debts Written off 12.05 15.93
Assets Condemned & Written-off 0.24 0.45
429.78 397.59
15 INTEREST AND BANK CHARGES
Term Loans 1.17 5.32
Debentures 0.84 2.27
Fixed Deposits 1.68 4.77
Others 6.47 4.84
10.16 17.20
Less: Interest Receipts (TDS-Rs.0.68 million) 9.64 6.20
(Previous year Rs.1.14 million)
0.52 11.00
Bank Charges 7.42 6.96
7.94 17.96
16 PRIOR YEAR ADJUSTMENTS
INCOME
Provision for Expense - Earlier Years Nil 0.18
Total (A) Nil 0.18
EXPENSES
Income Tax paid relating to earlier years Nil 4.19
Prior year Expenses 0.32 Nil
Total (B) 0.32 4.19
(A-B) (0.32) (4.01)